Global Data Center Generator Market Forecast to 2028 - Increase in Use of Renewable Energy in Data Centers Presents Opportunities - ResearchAndMarkets.com

DUBLIN--(BUSINESS WIRE)--The "Global Data Center Generator Market Forecast to 2028 - COVID-19 Impact and Global Analysis by Product Type, Capacity, and Tier" report has been added to ResearchAndMarkets.com's offering.

The data center generator market is expected to reach US$ 6,729.53 million by 2028 from US$ 4,693.00 million in 2021; it is estimated to grow at a CAGR of 5.3% from 2021 to 2028.

The overall market has been segmented into North America, Europe, Asia Pacific (APAC), Middle East & Africa, and South & Central America. Germany, France, the UK, the Netherlands, and Italy are a few key contributors to the European data center generator market.

The Europe data center generator market growth is likely to expand as more renewable energy sources are adopted. AWS, Google, Equinix, Interxion, OVH Cloud, Scaleway, Aruba, and 17 other industry associations have agreed to make their facilities carbon neutral by 2030 by using 100% renewable energy sources. According to the Climate Neutral Data Centre Pact, by December 31, 2025, 75% of the power supplied to data centers in Europe would come from renewable or carbon-free sources, to reach 100% by December 31, 2030. This announcement will likely provide a significant boost to the European data center generator market size.

The data center generator market size in Southeast Asia is segmented into Singapore, Malaysia, Thailand, and the Rest of Southeast Asia. With many developments in Singapore, Indonesia, Malaysia, Vietnam, Cambodia, and Thailand, Southeast Asia's data center generator industry is rapidly expanding. Southeast Asia is one of the world's fastest-growing digital markets. The demand for faster internet networks and the subsequent demand for data centers to store data created by the networks has increased due to the rise in internet usage and social media trends. These trends are boosting the production of new data centers in Southeast Asia, which is propelling the data center generator market share.

The data center generator market growth in the MEA is segmented into South Africa, the UAE, Saudi Arabia, and the Rest of MEA. The market in the MEA is booming due to an increase in the number of data centers across the region. The number of internet users across the region is rising continuously. For instance, according to the UAE's Telecommunications Regulatory Authority (TRA), there were 3,269,359 internet subscribers and 17,075,188 active mobile phone subscribers in the UAE as of March 2021. Further, the UAE is one of the world's most connected countries. This is leading to an increase in data storage capacity requirements, leading to a rise in the number of data centers, further propelling the growth of the data center generator market.

The data center generator market faced a negative impact of the pandemic in the initial months of 2020 with the closing of manufacturing facilities and disruption in the supply chain of various component manufacturers. Also, the supply chain disruption of fuels such as diesel required to run data center generators caused a negative impact in 2020. Besides, the electricity demand dropped as business activities slowed down during the pandemic. Therefore, very few investments have been made in the generator industry in 2020. However, the overall market witnessed a positive impact of the COVID-19 pandemic because of the increase in number of hyper scale facilities.

The global data center generator market is segmented based on product type, capacity, and tier. Based on product type, the data center generator market is segmented into diesel, natural gas, and others. In terms of capacity, the data center generator market is segmented into less than 1 MW, 1-2 MW, and greater than 2 MW. Further, based on tier, the data center generator market is segmented into tier 1 & 2, tier 3, and tier 4.

Market Dynamics

Drivers

• Increase in Number of Data Centers
• Rise in Backup Power Supply Requirements in Data Centers

Restraints

• Fuel Management Problems in Data Centers Causing Downtime

Opportunities

• Increase in Use of Renewable Energy in Data Centers

Future Trends

• Rise in Adoption of DRUPS

Companies Mentioned

• ABB
• Atlas Copco AB
• Caterpillar
• Cummins Inc.
• DEUTZ AG
• Generac Power Systems, Inc.
• HITEC Power Protection
• Kirloskar
• Kohler Co.
• Mitsubishi Motors Corporation

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